Members of the State Land Board in Helena are considering developing vast tracts of state-owned coal near Ashland.

Chuck Kerr with Houston-based Great Northern Properties says the company is willing to put its Otter Creek tracts up for lease first, as long as the state quickly follows suit.

The state has 610,000,000 tons of coal spread over 9,500 acres, but the state and private coal holdings are held in a "checkerboard" ownership pattern and must be developed together.

Governor Brian Schweitzer and other top elected officials worry the state won't get enough if it leases the coal too soon.

But, Kerr says he thinks the time to move has come, and both the state and his company will have to accept lower prices to subsidize development of new infrastructure to reach the coal.

(from September 21, 2009)

State officials will be talking about developing vast tracts of state-owned coal in southeastern Montana on Monday, but any decision on the highly-discussed issue is not likely anytime soon.

Montana Governor Brian Schweitzer has been outspoken with his opinion that the state could get more money by waiting to lease its 610 million-tons of coal which are spread over 9,500 acres near Ashland.

None of the other four state-wide elected officials that make up the Land Board are pushing to move more quickly, but private industry has been pushing for development of the tracts which could also open the door to a dramatic expansion of the region's coal industry.

The project is fiercely contested by environmentalists and *some Montana property owners and the Land Board will be taking public comment on the issue during Monday's meeting.